Key investment points: The announcement of the fixed increase was completed, and the participation of the majority shareholders showed confidence. The company announced the completion of the non-public offering of shares: 245 million additional shares were added, the issue price was set at 12.23 yuan/share, and the net capital raised was 2,958 billion yuan. Among them, Dongfang Tongzheng, a major shareholder, was allocated 1.6 billion yuan. The lockdown period was 3 years, and the participation rate was over 50%, demonstrating confidence in the company's development. TEDA Manulife Fund, Pacific Securities, Golden Eagle Fund, Jinyuan Shunan Fund, NORD Fund, and Xinhua Fund received a fixed quota of the remaining 1.4 billion yuan. The company's non-public offering of new shares will be issued and listed on the Shenzhen Stock Exchange on September 12. Open a new chapter in the development of online medical care. The main projects specified this time are telemedicine and health management service platform projects. Service types include remote ECG, remote B-ultrasound, remote DR, remote pathological analysis, and remote consultation. The company has explored a clear business model and will focus on developing high-quality medical resources in Chongqing, Sichuan and other places. The company will continue to develop high-quality medical resources, collaborate with the relevant experience and resources of Chongqing Yade and Jinshengda Air Hospital, vigorously carry out telemedicine at the grassroots level in line with the major trend of hierarchical diagnosis and treatment, and actively participate in public hospital restructuring, transfer 51% of the shares of Chenzhou First People's Hospital East Hospital Co., Ltd., further expand medical services and seize excellent medical resources, and help the company's “pharmaceutical+medical” two-wheel drive strategy to open a new chapter in the company's development. Performance is expected to grow steadily. The company's main products such as cephalosporin preparations and gastrointestinal health products have overcome pressure, achieved good bid results, and maintained a good price system in the context of bid price reductions, while the API and intermediates business is expected to improve sequentially in the second half of the year. The company's overall gross margin was relatively stable, but high expenses during the period had an impact on net profit, and it is expected that subsequent fixed capital increases will help ease financial expenses. We expect annual performance growth of more than 20% to achieve steady growth. Optimistic about the company's long-term development and maintaining a “buy” rating. The company's EPS in 2016-2018 is expected to be 0.18, 0.23, and 0.28 yuan respectively (considering fixed growth and dilution), and the corresponding PE is 78, 62, and 52 times, respectively. As a leading explorer of Internet healthcare, the company has found a good profit model, and should be given a certain valuation premium. According to 80-85 times PE in 2017, the reasonable price range for 6-12 months is 18.4-19.55 yuan, and the first target price is 19 yuan, maintaining the “buy” rating risk alert. The bid price reduction exceeded expectations, and the progress of medical service layout fell short of expectations.